IMPORTANT POINT
When a misconduct of criminal breach of trust is held proved, reinstatement cannot be ordered.

ORDER

This appeal has been preferred by the U.P. State Road Transport Corporation against the judgment and order dated 27.08.2008 passed by the High Court of Uttarakhand at Nainital in Writ Petition (M/S) No.974 of 2001.

2. The respondent-employee was employed as a conductor with the appellant on 25.12.1988. On 08.10.1990, in the course of inspection, it was found by the inspecting team that 78 passengers were traveling without ticket while the fare had already been collected by the respondent. On that charge, an inquiry was held and the misconduct alleged was proved against the respondent delinquent. This led to order dated 17.06.1992 by which the service of the respondent was terminated. The respondent workman raised an industrial dispute, which was referred for adjudication to the Labour Court, Meerut, U.P. being Adjudication Case No. 02/1994. The workman admitted before the labour court that the inquiry was fair and proper. In view of the said statement, the labour court held that no further discussion was necessary on the issue of fairness of the inquiry. However, the labour court, without giving any further reason except that the punishment awarded was too severe, directed reinstatement of the respondent in service without any back wages but with continuity in service and full wages from the date of award dated 22.10.1997.

3. The appellant preferred a writ petition before the High Court. The High Court dismissed the same observing that the labour court had reinstated the workman with entire back wages which, it is pointed out, is factually incorrect. In spite of service of notice, the workman has not entered appearance.

4. We have heard learned counsel for the appellant. She submitted that the labour court was not justified in interfering with the punishment awarded as the misconduct alleged was of serious nature. What was alleged against the workman is that he had collected fare from 78 passengers and did not issue the tickets to them, which amounted to criminal breach of trust. Once such a misconduct was proved, reinstating the workman could not be justified. It was submitted that though the labour court may, in an appropriate case, interfere with the punishment awarded, but only when such punishment is not otherwise justified. Reliance is placed upon the judgment of this Court in the case of U.P. State Road Transport Corporation, Dehradun v. Suresh Pal, (2006) 8 SCC 108

Relevant observations are:

“7. Short question for our consideration in the present case is whether the punishment which has been modified by the learned Single Judge is justified or not? The learned Single Judge found that the punishment awarded in the present case is disproportionate to the guilt of the delinquent. So far as, the guilt of the petitioner is concerned, in the domestic enquiry it has been found that the petitioner is guilty of not issuing tickets to the twenty passengers and the same finding of the domestic enquiry has been upheld by the Labour Court and the High Court. The petitioner was a Conductor and holding the position of trust. If incumbent like the petitioner starts misappropriating the money by not issuing a ticket and pocketing the money thereby causing loss to the Corporation then this is a serious misconduct. It is unfortunate that the petitioner was appointed in 1988 and in the first year of service he started indulging in malpractice then what can be expected from him in the future. If this is the state of affairs in the first year of service and if such persons are allowed to let off to the light punishment then this will be a wrong signal to the other persons similarly situated. Therefore, in such cases the incumbent should be weeded out as fast as possible and same has been upheld by the Labour Court. We are firmly of the view that such instances should not be dealt with lightly so as to pollute the atmosphere in the Corporation and other co-workers.

8. Normally, courts do not substitute the punishment unless they are shocking